If you are new to trading, you are going to want to learn the swing trading basics before you get inundated with complex swing trading algorithms, backtesting, and candlestick chart patterns for swing traders. That is why we have come up with a list of 10 simple things you can do to learn the swing trading basics.


Step 1: Open an account that won’t flag you for pattern day trading.

For more on this you can read an article that better explains this here:

Step 2: Learn more about Hot Sectors

Once again, you can learn more about hot stock sectors here on The Trade Locker website. Just visit our Blog section. We have written countless articles on swing trading that explain hot stock sectors in great detail.

Step 3: Look for stocks with high volatility

If a stock has a lot of ups and downs you will have more swing trading opportunities.

Step 4: It’s this simple:¬†Buy on the lows and sell on the highs

This may seem like common sense but it takes a great deal of training to be able to do this successfully. If you are new to swing trading please realize that swing trading is not easy. It often takes years of work and devotion to succeed.

Step 5: Timing is Everything

You may buy the right stock but if you don’t time it right you are in trouble.

Step 6: Only swing trade stocks you would be willing to trade long term

Sometimes a swing trade can go wrong so you might get stuck in a position for a while. (Especially if you are new and inexperienced) Also, unexpected life events can cause you to lose focus on your stock positions. For this reason, just imagine what would happen if you bought a stock and forgot to check it. If you are afraid to hold it long term, swing trading it becomes more risky and you’ll have to pay much more daily attention to the position.

Step 7: Have a trade plan in mind – Set your entry and exit points

The best way to avoid the problems associated with step 6 is to have a trade plan.

Step 8: Don’t expect to get rich on a single trade – Pace Yourself

Think of swing trading as a marathon and not a sprint.

Step 9: Don’t put all of your eggs in one basket

Remember that diversification is a good rule of thumb for any trader.

Step 10: Keep a swing trading journal

If you keep track of your trading successes and failures you will better learn from your experiences.

Do you know of any swing trading basics not mentioned in the 10 steps? Please list them below in the comments section. Also, don’t forget to check out The Trade Locker’s new stock message boards.

There are many ways that stock message boards can be beneficial to swing trading so please don’t be afraid to be the first to comment on any of our stocks. We have every Nasdaq stock-ticker on our stock boards but we need your help to get more comments on them!

The Trade Locker is a free online stock market community designed to help our community members become better traders. If you haven’t done so already you can sign up for free here.